On the heels of landing a $37 million series C investment, U.K.-based Funding Circle has announced it will set up shop in San Francisco.
Funding Circle, which provides an online marketplace to let individual investors fund small business loans, will partner with Endurance Lending Network, a San Francisco-based business lender, to form its U.S. unit. Co-founders of Endurance Lending Network, Sam Hodges and Alex Tonelli, will lead the operations in America.
Since launching in the UK in 2010, Funding Circle has generated more than $250 million of loans. Businesses can typically access the capital within seven days, according to the company.
"Financial services is going through the most significant disruption for a generation" said Samir Desai, co-founder and chief executive of Funding Circle, in a press release. "The way businesses borrow is being transformed by eliminating the obstacles of an outdated banking system and putting owners directly in touch with investors looking to earn attractive returns."
Reimagining small business lending has caught the eyes of newer companies like On Deck and Kabbage in America. Paychex and Biz2Credit recently launched an online marketplace for small business loans. A number of more general crowdfounding sites like Kickstarter have formed, as well as specific sites that match investors with small businesses such as SeedInvest and CircleUp.